UBA HALF-YEAR PROFIT DECLINES BY 16% AMID SHARP LOSSES IN TRADING AND FX GAINS
United Bank for Africa (UBA) reported a 16% drop in its half-year net profit for the six months ending June 2024, falling to ₦316.4 billion. The decline was driven by a significant net fair value loss of ₦311.7 billion on derivatives, a sharp contrast from the ₦348.4 billion gain recorded in the same period last year.
This downturn led to a 76.5% slump in UBA's net trading and foreign exchange gains, with income from these areas falling to ₦98.2 billion from ₦418.3 billion previously. Despite the dip in profit, UBA announced a total cash dividend of ₦68.4 billion to shareholders, equivalent to ₦2 per share, four times the interim dividend paid last year.
Investors responded positively to the dividend news, pushing UBA's share price up by 9.9% shortly after the announcement.
Key Points:
Net Profit: ₦316.4 billion, down 16%.
Net Fair Value Loss: ₦311.7 billion on derivatives.
Net Trading/FX Gains: Fell by 76.5%, from ₦418.3 billion to ₦98.2 billion.
Dividend: ₦68.4 billion (₦2 per share).
United Bank for Africa (UBA) reported a 16% drop in its half-year net profit for the six months ending June 2024, falling to ₦316.4 billion. The decline was driven by a significant net fair value loss of ₦311.7 billion on derivatives, a sharp contrast from the ₦348.4 billion gain recorded in the same period last year.
This downturn led to a 76.5% slump in UBA's net trading and foreign exchange gains, with income from these areas falling to ₦98.2 billion from ₦418.3 billion previously. Despite the dip in profit, UBA announced a total cash dividend of ₦68.4 billion to shareholders, equivalent to ₦2 per share, four times the interim dividend paid last year.
Investors responded positively to the dividend news, pushing UBA's share price up by 9.9% shortly after the announcement.
Key Points:
Net Profit: ₦316.4 billion, down 16%.
Net Fair Value Loss: ₦311.7 billion on derivatives.
Net Trading/FX Gains: Fell by 76.5%, from ₦418.3 billion to ₦98.2 billion.
Dividend: ₦68.4 billion (₦2 per share).